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UN Security Council Resolution 986
April 14, 1995

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Introduction

In April of 1995, mindful of pressures created on Iraq by the embargo imposed by previous resolutions, the UN Security passed resolution 986, allowing Iran to sell limited quantities of oil in return for food. Subsequently it became apparent that the Iraqi government had taken various measures to subvert the purpose of the resolution and to purchase armaments with the proceeds of oil sales.

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S/RES/986 (1995)  19950414                                                 14 April 1995

 

RESOLUTION 986 (1995)

Adopted by the Security Council at its 3519th meeting,

on 14 April 1995

The Security Council,

Recalling its previous relevant resolutions,

Concerned by the serious nutritional and health situation of the Iraqi  population, and by the risk of a further deterioration in this situation,

Convinced of the need as a temporary measure to provide for the  humanitarian needs of the Iraqi people until the fulfilment by Iraq of the  relevant Security Council resolutions, including notably resolution 687 (1991)  of 3 April 1991, allows the Council to take further action with regard to the  prohibitions referred to in resolution 661 (1990) of 6 August 1990, in  accordance with the provisions of those resolutions,

Convinced also of the need for equitable distribution of humanitarian  relief to all segments of the Iraqi population throughout the country,

Reaffirming the commitment of all Member States to the sovereignty and  territorial integrity of Iraq,

Acting under Chapter VII of the Charter of the United Nations,

1.Authorizes States, notwithstanding the provisions of paragraphs 3 (a),  3 (b) and 4 of resolution 661 (1990) and subsequent relevant resolutions, to  permit the import of petroleum and petroleum products originating in Iraq,  including financial and other essential transactions directly relating thereto,  sufficient to produce a sum not exceeding a total of one billion United States  dollars every 90 days for the purposes set out in this resolution and subject to  the following conditions:

(a)Approval by the Committee established by resolution 661 (1990), in  order to ensure the transparency of each transaction and its conformity with the  other provisions of this resolution, after submission of an application by the State concerned, endorsed by the Government of Iraq, for each proposed purchase  of Iraqi petroleum and petroleum products, including details of the purchase price at fair market value, the export route, the opening of a letter of credit  payable to the escrow account to be established by the Secretary-General for the  purposes of this resolution, and of any other directly related financial or  other essential transaction;

(b)Payment of the full amount of each purchase of Iraqi petroleum and  petroleum products directly by the purchaser in the State concerned into the  escrow account to be established by the Secretary-General for the purposes of  this resolution;

2.Authorizes Turkey, notwithstanding the provisions of paragraphs 3 (a),  3 (b) and 4 of resolution 661 (1990) and the provisions of paragraph 1 above, to  permit the import of petroleum and petroleum products originating in Iraq  sufficient, after the deduction of the percentage referred to in paragraph 8 (c)  below for the Compensation Fund, to meet the pipeline tariff charges, verified  as reasonable by the independent inspection agents referred to in paragraph 6  below, for the transport of Iraqi petroleum and petroleum products through the  Kirkuk- Yumurtalik pipeline in Turkey authorized by paragraph 1 above;

3.Decides that paragraphs 1 and 2 of this resolution shall come into  force at 00.01 Eastern Standard Time on the day after the President of the  Council has informed the members of the Council that he has received the report  from the Secretary-General requested in paragraph 13 below, and shall remain in  force for an initial period of 180 days unless the Council takes other relevant  action with regard to the provisions of resolution 661 (1990);

4.Further decides to conduct a thorough review of all aspects of the  implementation of this resolution 90 days after the entry into force of  paragraph 1 above and again prior to the end of the initial 180 day period, on  receipt of the reports referred to in paragraphs 11 and 12 below, and expresses  its intention, prior to the end of the 180 day period, to consider favourably  renewal of the provisions of this resolution, provided that the reports referred  to in paragraphs 11 and 12 below indicate that those provisions are being  satisfactorily implemented;

5.Further decides that the remaining paragraphs of this resolution shall  come into force forthwith;

6.Directs the Committee established by resolution 661 (1990) to monitor  the sale of petroleum and petroleum products to be exported by Iraq via the  Kirkuk-Yumurtalik pipeline from Iraq to Turkey and from the Mina al-Bakr oil  terminal, with the assistance of independent inspection agents appointed by the  Secretary-General, who will keep the Committee informed of the amount of  petroleum and petroleum products exported from Iraq after the date of entry into  force of paragraph 1 of this resolution, and will verify that the purchase price  of the petroleum and petroleum products is reasonable in the light of prevailing  market conditions, and that, for the purposes of the arrangements set out in  this resolution, the larger share of the petroleum and petroleum products is  shipped via the Kirkuk-Yumurtalik pipeline and the remainder is exported from  the Mina al-Bakr oil terminal;

7.Requests the Secretary-General to establish an escrow account for the  purposes of this resolution, to appoint independent and certified public  accountants to audit it, and to keep the Government of Iraq fully informed;

8.Decides that the funds in the escrow account shall be used to meet the  humanitarian needs of the Iraqi population and for the following other purposes,  and requests the Secretary-General to use the funds deposited in the escrow  account:

(a)To finance the export to Iraq, in accordance with the procedures of  the Committee established by resolution 661 (1990), of medicine, health  supplies, foodstuffs, and materials and supplies for essential civilian needs,  as referred to in paragraph 20 of resolution 687 (1991) provided that:

(i) Each export of goods is at the request of the Government of Iraq;

(ii)Iraq effectively guarantees their equitable distribution, on the basis  of a plan submitted to and approved by the Secretary-General,  including a description of the goods to be purchased;

(iii) The Secretary-General receives authenticated confirmation that the  exported goods concerned have arrived in Iraq;

(b)To complement, in view of the exceptional circumstances prevailing in  the three Governorates mentioned below, the distribution by the Government of  Iraq of goods imported under this resolution, in order to ensure an equitable  distribution of humanitarian relief to all segments of the Iraqi population  throughout the country, by providing between 130 million and 150 million United  States dollars every 90 days to the United Nations Inter-Agency Humanitarian  Programme operating within the sovereign territory of Iraq in the three northern  Governorates of Dihouk, Arbil and Suleimaniyeh, except that if less than  one billion United States dollars worth of petroleum or petroleum products is  sold during any 90 day period, the Secretary-General may provide a  proportionately smaller amount for this purpose;

(c)To transfer to the Compensation Fund the same percentage of the funds  deposited in the escrow account as that decided by the Council in paragraph 2 of  resolution 705 (1991) of 15 August 1991;

(d)To meet the costs to the United Nations of the independent inspection  agents and the certified public accountants and the activities associated with  implementation of this resolution;

(e)To meet the current operating costs of the Special Commission, pending  subsequent payment in full of the costs of carrying out the tasks authorized by  section C of resolution 687 (1991);

(f)To meet any reasonable expenses, other than expenses payable in Iraq,  which are determined by the Committee established by resolution 661 (1990) to be  directly related to the export by Iraq of petroleum and petroleum products  permitted under paragraph 1 above or to the export to Iraq, and activities  directly necessary therefor, of the parts and equipment permitted under paragraph 9 below;

(g)To make available up to 10 million United States dollars every 90 days  from the funds deposited in the escrow account for the payments envisaged under  paragraph 6 of resolution 778 (1992) of 2 October 1992;

9.Authorizes States to permit, notwithstanding the provisions of  paragraph 3 (c) of resolution 661 (1990):

(a)The export to Iraq of the parts and equipment which are essential for  the safe operation of the Kirkuk-Yumurtalik pipeline system in Iraq, subject to  the prior approval by the Committee established by resolution 661 (1990) of each  export contract;

(b)Activities directly necessary for the exports authorized under  subparagraph (a) above, including financial transactions related thereto;

10.Decides that, since the costs of the exports and activities authorized  under paragraph 9 above are precluded by paragraph 4 of resolution 661 (1990)  and by paragraph 11 of resolution 778 (1991) from being met from funds frozen in  accordance with those provisions, the cost of such exports and activities may,  until funds begin to be paid into the escrow account established for the  purposes of this resolution, and following approval in each case by the  Committee established by resolution 661 (1990), exceptionally be financed by  letters of credit, drawn against future oil sales the proceeds of which are to  be deposited in the escrow account;

11.Requests the Secretary-General to report to the Council 90 days after  the date of entry into force of paragraph 1 above, and again prior to the end of  the initial 180 day period, on the basis of observation by United Nations  personnel in Iraq, and on the basis of consultations with the Government of  Iraq, on whether Iraq has ensured the equitable distribution of medicine, health  supplies, foodstuffs, and materials and supplies for essential civilian needs,  financed in accordance with paragraph 8 (a) above, including in his reports any  observations he may have on the adequacy of the revenues to meet Iraq's  humanitarian needs, and on Iraq's capacity to export sufficient quantities of  petroleum and petroleum products to produce the sum referred to in paragraph 1  above;

12.Requests the Committee established by resolution 661 (1990), in close  coordination with the Secretary-General, to develop expedited procedures as  necessary to implement the arrangements in paragraphs 1, 2, 6, 8, 9 and 10 of  this resolution and to report to the Council 90 days after the date of entry  into force of paragraph 1 above and again prior to the end of the initial  180 day period on the implementation of those arrangements;

13.Requests the Secretary- General to take the actions necessary to ensure  the effective implementation of this resolution, authorizes him to enter into  any necessary arrangements or agreements, and requests him to report to the  Council when he has done so;

14.Decides that petroleum and petroleum products subject to this  resolution shall while under Iraqi title be immune from legal proceedings and  not be subject to any form of attachment, garnishment or execution, and that all  States shall take any steps that may be necessary under their respective  domestic legal systems to assure this protection, and to ensure that the  proceeds of the sale are not diverted from the purposes laid down in this  resolution;

15.Affirms that the escrow account established for the purposes of this  resolution enjoys the privileges and immunities of the United Nations;

16.Affirms that all persons appointed by the Secretary-General for the  purpose of implementing this resolution enjoy privileges and immunities as  experts on mission for the United Nations in accordance with the Convention on  the Privileges and Immunities of the United Nations, and requires the Government  of Iraq to allow them full freedom of movement and all necessary facilities for  the discharge of their duties in the implementation of this resolution;

17.Affirms that nothing in this resolution affects Iraq's duty  scrupulously to adhere to all of its obligations concerning servicing and  repayment of its foreign debt, in accordance with the appropriate international  mechanisms;

18.Also affirms that nothing in this resolution should be construed as  infringing the sovereignty or territorial integrity of Iraq;

19.Decides to remain seized of the matter.

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